Malaysia’s state oil firm Petronas has expressed interest in buying stake in the liquefied natural gas (LNG) import terminal being developed by Indian Oil Corporation (IOC), chairman of IOCBSE 0.88 % has said.
IOC is setting up a 5 mt LNG terminal at Ennore in Tamil Nadu that would get operational by next financial year. Petronas as well as Petronet LNG, India’s largest LNG importer, have expressed interest in investing in the Ennore LNG terminal but IOC hasn’t yet made up its mind on the stake that can be offered to an investor, chairman Sanjiv Singh said. IOC has stake in a Petronas’ Canadian natural gas project, and the two companies also have a joint venture in India that produces LPG and other oil products. Petronet LNG is partly owned by IOC.
A decision on partnership in the Ennore terminal will also factor in other qualifications such as investor’s experience in handling LNG terminal, Singh said. He said it was even ‘possible’ that IOC develops the terminal and then mandates some other company such as Petronet LNG to run it.
Ennore’s is the first LNG terminal being developed by IOC though it has bought or proposed to buy stakes in other terminals in the country. Earlier this month, IOC’s board approved taking up to 50% stake in a Rs 5,000-crore LNG terminal being jointly set up Adani Enterprises and Gujarat State Petroleum Corporation (GSPC) at Mundra, Gujarat.
IOC’s stake in the Mundra terminal will be a mix of fresh equity as well as the partial stake of GSPC, which is looking to sell its stake, Singh said. Last year, IOC had agreed to buy stake in another LNG terminal being developed by Adani Enterprises at Dhamra, Odisha. IOC is the second largest player in the country’s natural gas market. By enhancing its gas import capacity, the company is hoping to strengthen its position.
Source: Economic Times